Review the transactions below and select the one that would be journalized in a general journal when specialized journals are used within the business.

A. Purchasing equipment by issuing a check

B. Receiving a cash payment from a customer

C. Purchasing inventory on account

D. Purchasing equipment by issuing a note payable

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Business

21 December, 13:06

Review the transactions below and select the one that would be journalized in a general journal when specialized journals are used within the business.

A. Purchasing equipment by issuing a check

B. Receiving a cash payment from a customer

C. Purchasing inventory on account

D. Purchasing equipment by issuing a note payable

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Answers (1)

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Cierra Riddle · Answer 1

The correct option is D, purchasing equipment by issuing a note payable

Explanation:

Issuing check to pay for equipment purchase, receipt of cash from a customer as well as purchase of inventory on account are all usual transactions that take place regularly within a business, hence do not require any specialized journals in posting them in the books of account.

However, purchase of equipment by issuing a note a more complex transaction that seldom occur, it is important to reflect in the accounts in a special way in order to draw attention to it that it is a special transaction that should be handled different from other transactions